Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1887-03-23
A Word OF Advice.
, The Editor offhe Dispatch:


To the Editor ofthe Dispatch:
am sure that the supporters in our
Legislature Of the constitutional amend
ment which has been introduced on the
debt question simply desire to bring
about settlement on the part OF the
bondholders upon the basis OF the Rid
dleberger bill.
am sure that they do not support
this measure as purely a reputation
scheme, and l am satisfied TINT there
are not many Democrats in the State
who would not hail with delight such
an amendment TO our Constitution il it
would result in accomplishing settle
ment which we have been all striving
for since 1883.
am frank to say that / think our
people would be justified in adopting
almost any scheme which would force
the funding Of the debt in Riddleberger
bonds.
The question which we all should ask
ourselves in considering the proposed
amendment is, whether it will accom-
plish the object aimed at, let it be
either the means of forcing a settle
ment of the debt or a Reputation OF
the same.
The whole difficulty in our way has
been the tax-receivable feature OF the
coupons. II the bonds had been issued
in 1871 without these coupons attached
to them there would have been no diff
fculty whatever in settling with the
creditors upon any terms the State
might have proposed.
So we must never forget, i'll con-
sidering this question, that it is not the
debt represented by the bonds, but the
interest represented by the peculiar
coupons, which has given us all the
trouble we have had.
And until either by the united action
of the people in refusing to use these
coupons in the payment of their taxes,
or by some legal method which will
prevent their being so used, can We
hope to force the creditors to settle
ment upon the basis OF the Riddleber-
ger bill, or any other bill which hap
pens not to suit them.
This amendment, as | understand it,
simply aims to prohibit after certain
specified date any officer of the State
or any future Legislature from issuing
Riddieberger bonds or any other bonds
in lieu Of those now held by the credi-
tors outside of the bonds issued under
the Riddleberger settlement before the
amendment takes effect.
Now how will this advantage us in
our present difficulties q? 1t isn't what
we are to pay when the tax-receivable
coupon bonds fall due, but how We
can keep at the present time the reve-
nues of our State from being consumed
by these self-executing coupons, which
give us so much trouble, and should
exercise the talent of our best men.
1 would most seriously ask the
movers of this amendment proposed
to consider most carefully the effect it
might have upon the whole question
before they urge its adoption.
1t will be claimed by its enemies as
purely q reputation scheme. Thou
sands of Democrats who are now stand
ing and have stood since 1888 by the
Riddleberger settlement would oppose
it most bitterly, and its ultimate adop-
ton is very questionable, at the same
time giving no remedy whatever against
the coupons. Large classes of our
people would be drawn away from their
present antagonism to the creditor,
become his friends, and use the cou-
pons as a means of strengthening their
| fight in his behalf.
1t is hardly possible that if the
amendment be adopted the creditor
would he in the least way affected by it,.
/ have had considerable opportunity
to learn that upon the markets of our
country G mean stock and money
markets) the value of negotiable bonds
is more enhanced by the regular pay
ment of the coupons than by the secu-
rity which may exist for the payment
of the bond itself.
The bonds of the creditors, with
their coupons being readily sold i'll all
sections of our State, would enhance in
value very greatly, and the creditors,
instead of being injured, would find
themselves able to dispose OF their
bonds at very handsome profit, and
thus the holders Of our debt would be
constantly changing.
On the other hand, if some measure
can be devised by which these "cut-
worms Of the treasury can be killed
| the bonds will greatly depreciate, and
| the creditor will be at the mercy OF
our Legislature and will willingly and
| gladly accept the Riddleberger settle
ment or even one Of less advantage tc
him.
have read carefully the ill recon-
mended by the Governor and intro.
duced by Mr.. Pollard, and believe il
holds ont to US very good prospect OF
accomplishing the end we all have in
| view.
At any rate whether the amendment
is to be adopted or not / am at a loss to
see why its friends should not
be most anxious to adopt some
measure having for its object the
Pollard bill, as a necessary mean;
of strengthening their position il
this debt fight. The coupon out Of
the way, the adoption of the amend
ment would be the last straw on the
bondholder's back. With the coupons
in general use by our people these
specializing holders of our bonds would
turn up their noses with perfect indiffe
renee to the threat made in the pro
posed amendment \. y.